Decreasing the rate of ad valorem tax imposed by a school district and providing for certain transfers to the state school district finance fund.

2025-2026 Regular Session

HB 2784 would cut local property taxes for Kansas school districts and redirect some revenue to a state School District Finance Fund.

Died in Committee

#funds #schools

Summary of HB 2784 (2025-2026) – Kansas

Purpose and intent

HB 2784 proposes to decrease the rate of ad valorem (property) tax imposed by individual school districts and to redirect certain tax revenues to the state-level School District Finance Fund. The bill aims to alter how property tax dollars are distributed between local school districts and a centralized state fund used for financing K-12 education.

Key provisions and changes

Reduction in local school district property tax rates: The bill would lower the ad valorem tax rate that school districts levy on property within their boundaries. This reduction would translate into lower property tax bills for property owners in affected districts.

Transfers to the State School District Finance Fund: Proceeds or revenue that would have supported the local school district tax rate are proposed to be redirected, at least in part, to the State School District Finance Fund. The mechanism (e.g., specific percentage or dollar amount) for these transfers is outlined in the bill, detailing how funds would be reallocated from local districts to the state fund.

Impact on local budgets and state support: By decreasing local district tax rates and increasing state fund contributions, the bill shifts a portion of K-12 financing from local property tax reliance toward state-level financing. The exact effects on local district budgets, state appropriations, and the overall funding mix for schools would depend on the enacted tax base, rate caps, and the transfer formula specified in the measure.

Who would be affected

Property owners within Kansas school districts: Potentially lower property tax bills due to reduced local levy rates.

Local school districts: Changes to their property tax authority and revenue streams; budgets and funding planning would need to adjust to the new financing structure.

State School District Finance Fund: Receives an increased share of funding via transfers, altering the composition of funding sources at the state level.

Procedural and timeline aspects

Introduction and referral: Introduced and referred to the Kansas House Committee on Taxation on February 18, 2026.

Committee action: The bill was considered by the House Committee on Taxation.

Status: Died in Committee as of April 10, 2026, meaning it did not advance to the full chamber for debate or a vote.

Potential impact (if enacted)

Would likely reduce local property tax burdens for property owners in participating districts.

Could reduce the reliance of local districts on ad valorem revenues and increase dependence on state-level financing.

The net fiscal impact would depend on the transfer mechanics, state funding levels, and any accompanying policy changes (e.g., adjustments to state aid formulas or guarantees to school districts).

Note: The bill did not become law, as it died in committee. If reintroduced, similar provisions would be subject to legislative debate and potential amendments affecting revenue neutrality, transition periods, and equity among districts.